EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

6 Months Ended

Jun. 30, 2025

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

11. EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

Earnings Per Share

The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Numerator:
Net loss attributable to ATN International, Inc. stockholders- Basic		(7,026)		9,003		(15,954)		2,690
Less: Preferred dividends		(1,507)		(1,376)		(2,965)		(2,727)
Net loss attributable to ATN International, Inc. common stockholders- Diluted	$	(8,533)	$	7,627	$	(18,919)	$	(37)

Denominator:
Weighted-average shares outstanding- Basic		15,223		15,254		15,177		15,346
Weighted-average shares outstanding- Diluted		15,223		15,255		15,177		15,346

Redeemable Noncontrolling Interests

In connection with certain acquisitions, the Company accounts for third-party non-controlling minority investments as redeemable noncontrolling interests, which consist of both redeemable common and, in some instances, preferred units, in its consolidated financial statements.

The common units contain put options allowing the holder to sell at a future date, the common units to a subsidiary of the Company at the then fair market value. The common units participate in the earnings and losses of the subsidiaries and are allocated their applicable share of earnings and losses. After the allocation of earnings and losses, the Company estimates the fair value of the common units and records the common units at the higher of the book value or the estimated fair value of the common units.

The preferred units contain put options allowing the holder to sell at a future date, the preferred units to a subsidiary of the Company at a fixed price equal to face value of the units plus unpaid dividends. The preferred units hold a distribution preference over common units and carry a fixed dividend rate.

The put options for both the common and preferred units, if any, are nonrecourse to the Company. The put options for the Alloy common units are exercisable beginning in 2026 and the put options for the Alaska Communications common and preferred units are exercisable at the earlier of a future initial public offering of the subsidiary or July 2028.

For the three months ended June 30, 2025 and 2024, the Company allocated losses of $5.1 million and $2.7 million, respectively, to the redeemable common units representing their proportionate share of operating losses. For the six months ended June 30, 2025 and 2024, the Company allocated $8.7 million and $6.2 million, respectively, to the redeemable common units representing their proportionate share of operating losses. The fair value of the Alaska common units was zero at both June 30, 2025 and December 31, 2024. The Alloy common units were carried at historical cost of $10.0 million and $10.6 million at June 30, 2025 and December 31, 2024, respectively, which exceeded its fair value.

The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for the six months ended June 30, 2025 and 2024 (in thousands):


	Redeemable Preferred Units		Redeemable Common Units		Total Redeemable Noncontrolling Interests
Balance, December 31, 2024	$	65,704	$	10,599	$	76,303
Accrued preferred dividend		2,965		—		2,965
Allocated net loss		—		(8,746)		(8,746)
Change in fair value		—		8,193		8,193
Balance, June 30, 2025	$	68,669	$	10,046	$	78,715


	Redeemable Preferred Units		Redeemable Common Units		Total Redeemable Noncontrolling Interests
Balance, December 31, 2023	$	60,094	$	25,823	$	85,917
Accrued preferred dividend		2,727		—		2,727
Allocated net loss		—		(6,176)		(6,176)
Change in fair value		—		857		857
Balance, June 30, 2024	$	62,821	$	20,504	$	83,325

ATN International, Inc. 10-Q